Agreements Cover Gathering, Processing and Downstream Services
Targa Resources Corp. announced the execution of new long-term, fee-based, integrated midstream agreements with subsidiaries of ExxonMobil, extending and expanding the two companies' relationship across the Permian Basin. The contracts cover integrated natural gas gathering and processing as well as downstream services, with significant acreage dedications in both the Delaware and Midland basins structured as 20-year deals.
New Permian Delaware Footprint and AMI Expansion
The agreements establish an extensive new area of mutual interest across the Permian Delaware for gathering, processing and downstream services over a 20-year term. Targa also added new acreage to its existing area of mutual interest in the Permian Midland and extended its current Permian Midland agreements to 20 years for gathering, processing and downstream services. In addition, a new 20-year natural gas liquids dedication was added for transportation and fractionation services spanning both the Permian Delaware and Permian Midland.
Three New Processing Plants and Bull Run II Pipeline
Targa announced three new natural gas processing plants in the Permian Delaware to support production growth in the area, and said it is evaluating up to five additional plants in the Permian Delaware to accommodate expected longer-term production growth. The company also unveiled a new 70-mile natural gas pipeline in the Permian Delaware, named Bull Run II, designed to increase natural gas takeaway capacity to the Waha Hub.
2026 Capital Plan Raised to $5.0 Billion
Alongside the ExxonMobil deal, Targa updated its full-year 2026 net growth capital estimate to $5.0 billion. The figure reflects the added Permian Delaware processing capacity, the Bull Run II pipeline and the expanded acreage dedications covered by the new agreements.
Significance for ExxonMobil's Permian Position
For ExxonMobil, the arrangements lock in midstream capacity and downstream services for its premier Permian Basin acreage over two decades, supporting continued development in the Delaware and Midland. The combined structure of gathering, processing, NGL transportation and fractionation commitments gives ExxonMobil a coordinated midstream pathway for production from the basin, while further entrenching Targa as a long-term midstream partner.
Open Items
Targa said evaluation of up to five additional Permian Delaware processing plants is ongoing, and the company has not disclosed a separate timeline for incremental capacity beyond the three plants announced. Final investment decisions, project sanctioning and further capacity announcements tied to the ExxonMobil dedications would be the next verifiable milestones tied to the agreements.
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